Uber halts construction in The Old Post Office, marking Chicago’s first big office project delayed by the coronavirus

Uber has halted construction on its massive space at The Old Post Office, marking Chicago’s first big office build-out to be put on hold because of the coronavirus pandemic.

The San Francisco-based company announced last year that it signed a 10-year lease for 463,000 square feet in the long-vacant Old Post Office. Uber plans to consolidate its Chicago offices and hire 2,000 employees in the city over three years. Originally, it planned to move in this fall.

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“As a consequence of the current COVID-19 crisis, we are going to temporarily pause construction in Chicago," spokeswoman Alix Anfang said in a statement. “While we don’t expect to move until 2021, we don’t anticipate any changes to our strategy or expectations regarding growth in Chicago.”

It was Uber’s decision to pause construction, Anfang said.

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The tech giant has been challenged with teams working remotely, as employees have been ordered to stay home to quell the spread of COVID-19, the disease caused by the coronavirus. The company is focusing on projects that serve drivers and customers while everyone works from home, she said.

Uber has also delayed some construction in Dallas. It also instituted a company-wide hiring freeze until May 31 amid the outbreak.

Lior Ron, head of Uber Freight, emailed Chicago employees Wednesday informing them of the delay at The Old Post Office.

The Old Post Office, center, in downtown Chicago, is seen Aug 19, 2019. Uber Technologies has decided to pause construction on its office space in the building. (Terrence Antonio James / Chicago Tribune)

Uber’s new office will serve as headquarters for the tech giant’s freight service, which connects truck drivers with shippers. Uber Freight has had a presence in Chicago since it launched in 2017, but the new office will serve as its first engineering hub outside of San Francisco.

In Chicago, Uber also employs people in the Uber Eats and Uber Ride businesses, such as sales staff, lawyers, marketing, and operational staff for Chicago and other Midwest markets.

Uber’s new space will be as big as 24 football fields and spread over two floors. It’s the largest lease signed in the building.

“We are not concerned about Uber’s commitment to The Old Post Office or to Chicago,” said Cailin Rogers, a spokeswoman for the Telos Group, which oversees leasing of the building for New York-based building owner 601W Cos. Uber is the only signed tenant in the building at 433 W. Van Buren St. that has paused construction, she said.

The Tribune reported in January that Uber was looking for a tenant to take over a 65,000-square-foot block of the space it has leased but has yet to move into. Uber is offering a 10-year sublease beginning in January 2021, according to marketing materials from real estate brokerage CBRE, which represents Uber.